Personal Finance - Get out of debt! | Shane Kluiter | Skillshare

Personal Finance - Get out of debt!

Shane Kluiter, Knowledge is Power

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8 Lessons (1h 24m)
    • 1. Personal finance introduction

    • 2. Budgeting basics intro

    • 3. Budgeting (1)

    • 4. Fun Money VS Expenses (1)

    • 5. How to use the on track spreadsheet

    • 6. Making your money work for you (1)

    • 7. Planning for Retirement (1)

    • 8. Saving and investments module (1)


About This Class


In this course we will cover the basics on how to create and balance a budget. Save for the future, retire, and adjust your mindset for future financial success. 6 in 10 Americans don't have enough saved to cover an emergency. After this course, you will have the foundation built to keep you from becoming one of them. This course has helped over 1,000 students on Udemy and nearly 100 Students on Skillshare take control of their finances. 

What you'll learn

  • After taking this course students will be able to balance their budgets, plan for the future, and understand how to create a long term financial future.
  • How to plan for your financial future
  • How personalize a budget plan that you can take with you anywhere using Google Sheets (Free with any Gmail account)
  • How to eliminate debt to secure your future
  • How budgeting can help balance fun money and expenses
  • How to get out of debt
  • How to avoid financial pitfalls


  • There are no tools required. It is recommended that you have access to google docs or Microsoft excel but it is not required.

Who this course is for:

  • This course is designed to give everyone a strong foundation for understanding how to better budget and spend their money. In doing so this course will benefit anyone looking for a better financial future.
  • Anyone who is in debt and wondering how to work their way out of debt.
  • Relieve stress with good personal financial management.

#finance #personalfinance #debt #debtcrisis #success #mindset #business #learn #onlinelearning #skillshare @skillshare


1. Personal finance introduction: welcome to inter personal finance and budgeting basics. The purpose of this course is to help us move from having a headache about her finances, being excited about where we are financially and we're gonna be in the future financially. So we have long term goals way know where we're going and we're happy financially. We're going to go over balancing your budget. Do you sing in eliminating debt? Making your money work for you is a very important thing to know do because we're gonna be able to generate compound interest. We're going to go over planning for retirement. Where you going to look at how we can work on our to have this special paying a little bit less in taxes. You're over here and that way keep more of our money. We're also going over the importance of savings and investments, understand why we need them and how to grow them. We're looking at some statistics on personal finance across the United States only, but less than 62% of Americans are able to pay their bills. There's emergency. 62% have no savings at all for any kind of emergency. So they get about to get a flat tire. 62% of us aren't ready to fix that flat tire. Most Americans don't have $1000 for emergency room visits or $500 for a car fare. 10 million people United States used payday one with each year as they can't afford a costume emergency. Something I want to mention about payday loans is that you have to avoid them. Payday loans. Trench. Insane fees At about 2 $400 percent percent. That is a huge number. That's four times you give up. If you just let it rack up, you can get so deep in a hole. Never get out. Hating ones are poison for your wallet. Poison for your bank. Account that poison for your life. If you can borrow from a friend borrowed from family, sell something before you get paid a long you have to get one. It needs to be for something essential to your life. It can't be for presence. It can't be for vacation. Can't be because somebody has a birthday Can't because you need a new TV. We're gonna talk about how to stay on track because money management isn't fun. It's something we have to dio You remember why you need to manage your money. So right now do you think about what is your Why are you doing this for family? Are you doing this to get out of debt doing this so you could make sure that you have retirement funds? Are you looking at how to manage your money better so you can have peace of mind. Maybe in the past you've run out of money and you're not sure why. But you know, when the future you want to do more to make sure that doesn't happen. Maybe you had your power get cut off or your water before those devastating moments in our lives that no one wants to repeat. We're gonna work on how to manage your money so that we never have those happen again. Strong finances will give you peace of mind. Security and most importantly, strong finances will give you a future future. Very few things in life and give you strong finances give you the ability to know that six months from now you're gonna be OK. A year from now, you're gonna be OK. You get to a point where you know if your kids will be okay, even if something happens to you? Just was strong Financial planning, and that's a huge weight. Have off your shoulders, reduces stress, and you're able to see more success. As we go into these modules, we're going to break them down by sections. So if you have any thing you need to go back to to remember different portions is very easy . If you want to learn more about retirement or text, sign comes back, comes around and you wanna go over how to reduce your taxes. Those modules are available to go back through for a quick refresher for just speaking with you in those modules as well. And always be sure to check in the different lessons to see if there are any downloadable content for you. Because we do have sheets built out that will help you to create your budget and identify expenses in your life. Don't make sure that we're managing money correctly. Thank you 2. Budgeting basics intro: 3. Budgeting (1): hi Train again. And this is a module on budgeting. So what is budgeting lies important. So budgeting is tracking your money as it comes in. And as it goes out, it's essentially like the profit and loss for your household. Your household, like a business doing the budget would be like doing all of your accounting work. No, very simply, this is just what you're paid and how you spend it. And the main thing we're gonna do here is we're gonna spend based on our expenses. We're gonna look at what we have to spend, what we have to save before we take money and go spend it on anything else. And that's a really hard mindset shift to make. A lot of people take their money, and they spend it the first weekend that they get it, and that is not a good way to live. That is gonna cause you a lot of problems in long run. And that might be why some of you are even on this video today. You know, I have done that in the past where I get into a bad situation where I'm letting myself do that. And that's why I have done a lot to learn more about budgeting. Learn more about science, and in this course, you know, we're going over a lot of basics, But we're going over a lot of things that people aren't necessarily taught. So most people aren't really taught how to do a budget. So we're looking expenses. A lot of people are gonna include mortgage and rent utilities, no car payments. But there's a few things were gonna that people forget. Like, you know, Internet cable, cell phone, these air, all monthly bills. You have to include your half to pay them. Everyone in America pretty much has a cell phone. Everyone has the Internet. Most people have cable car insurance is a monthly thing for most people. You can pay it every six months if you want to. What? You should say it every month for it. Uh, gas for your vehicle. You're gonna spend around the same amount every month. It's silly to not know what that number is. Take a month right down. This is how much I spent. Great. This is about how much we're gonna spend each month. I need to budget for that. That way. When we're pulling the money out. We know how much we have. Ah, health insurance. You're going to spend the same out every month. You don't wanna have savings. Savings is an expense. No. You have to put your savings away to ensure for your future monthly food. Your average costs monthly for food Do you eat out? Do you need to save extra money because you eat out more? When we sat down and we looked at our finances together, uh, did one of our initial budgets. After getting married, we looked at how much we were actually going out to eat, and it was a bit too much. You know, we've been living together for a little while first, but we really realized how much we were eating out compared to how much we reading. And when you look at how much money you're spending on things like that, it adds up quickly. And looking at that really allows you to budget better. Now when you a lot of people are gonna forget about pet ownership. You know my puppy, Rufus. He has to go to that every year. Couple times my puppy needs food. My puppy needs toys. so I budget for what my puppy needs. Same thing when you have kids, you're gonna want to set money aside for a doctor. You're gonna want to set set money aside for all little bills you're gonna get from having a kid now, anything you spend money on monthly. So if you have an Amazon prime account, you want to include that in your budget because you're paying monthly on it or Netflix or who lose. Hopefully you don't have every kind of one. There is, because that's really expensive. Now, when we look at our monthly income, what we want to look at is how much we have coming in after taxes. It does no good for us to look at the amount of money you'd make before taxes. So if you're making $4000 a month, your taxes after after taxes, your take home might only be let's make a simple essays 3000. Well, if we based our budget around that 4000 per month, we would be having a $1000 difference in our numbers, and we don't want a plan for that because that might mean the difference of us having savings and not having savings. We want to plan for the 3000 that's coming in. And if we get money back in taxes, then we can just add that to savings or we can use it towards a vacation. Now we look at how the budget I prefer to use a Google doc and I'm gonna have a Excel document that you can copy and paste into Google docks If you prefer Google docks where you can use as an excel document and this is kind of just a quickly out of how I do it now, When I broke this down our mortgages 800 utilities, water, water, gas We spend 2 50 a month on these, uh, our water bills a little bit higher just because of the area we live in. And I budget that much because I also include how much gas is gonna be in the winter all year round. Now debt payments. We pay $100 in debt. We don't have car payments currently, but we pay 100 bucks a month for cell phone and Internet is 80. We don't have cable right now. We got rid of that because we just watch Netflix, and then our car insurance is 1 10 Because we're down to one vehicle right now and we have one vehicle. It's a Prius. We spend $40 on gas and one thought it, um, looking at her health insurance. We're spending $100 a month. We have We're thankful enough to get enough from our employer for that. But we're looking at our income fat 2300. This is after tax. So, you know, we've food ownership food later, we have a cat 200 bucks a month. At least we spend on our dogs and get, you know, we we know that we're gonna have we know we're gonna have we spent around 250 bucks a month on food inside the house, and we know we have 3000 birth, $335 left. So some of that we allocate to saving some of that we allocate to fund money. So that's just based on a budget of when we had only $2300 coming in and what we had to do to get through that, because when a lot of people start looking at debt management, they start actually looking at it. Debt management and budget. And you know, generally there's a problem that came up that's gonna call people to start looking at this or a concern that they're worried about in the future. So this is planning for your future. This is planning for things to come, and I can actually pull up this document, show you how to use room. Great. So this is the budget planning document. So let's take that example we had of the $3000 a year earlier. Let's say this couple is Listen, this couple has two incomes, so this couple's two incomes, they're going to say it's $4500 a month after tax giggling. Well, now their mortgage rent. Let's put that up to 979 100. Utilities will say that's around 300. Weakness. Enter all these things, say this. Couples and debt. They have $300 in debt that they're paying on credit cards every month. They're paying double what they need you to pay it off, but they have a car loan that's 300 and their cellphone is actually higher than what ours as we go through. Ah, smaller carrier, so we could a little bit of a discount. But if you want to someone like Verizon, it's not hard to spend 1 30 1 50 Even they have cable and they have two cars, so they actually are paying more for insurance and their larger vehicles so they pay more for gas. Now we're looking at how much to pay for health insurance. Part of that's covered by the employer, and part of that's gonna be end up being covered by just the general cost of to them. So with two people covered by health insurance, currently, mine is actually 100 per paycheck. So I would say it's 2 to 2 30 a month just to be kind of on park there and then monthly food expense. They like to eat out a bit more. So let's call that 3 75 No Acosta pay ownership would say they don't have pets, but they have a few other things they pay monthly on. So let's say they have Netflix and Amazon prime 15 18 30. Then they get one of the pay by month in a box full of stuff like the little geek boxes that do with my wife did that for a little while. So let's say this 1 $60 a month. Well, they have $1315 left. Now that's going to go into savings. So we have an emergency fund you want to, and I had all of the funds below it. You could say how much you're actually going to spend. So you see your emergency fund? We have how? A new house fund. Let's say they have a vacation fund of a sort of general savings emergency. Newhouse. A vacation. These are the primary things that this couple is going for. So we have. And then we ever fund money to so fund money. So this is gonna be eating out. This is going to be hanging out with friends. Let's say they each get $300. Well, that's gonna leave us with 900. There is gonna leave us with 1015. All right. Well, if they each get 300 then that's 600. Sorry. Before it would be 7 50 70. Right? So that's a lot of money to spend. Maybe they shouldn't be doing them, because if we look at going into our savings. Say they're saving $300 a month. Then we're not gonna be funding our emergency fund that well our way. So it's just kind of playing with the numbers and seeing where you and your family are gonna end up. So our emergency fund, we need to replenish it. We're going to save $100 a month because right now we only have, say, $2000 we want to have it three. So by the end of the year, we'll have 3000 in it. We're gonna save money for our new home. We probably should be saving around 300 a month For that. We want to buy a new house and three years in a vacation fund. We want to take a nice vacation every year, not the fanciest one. But we want to run a hotel in, you know, travel of it. So let's say we're saving 200 a month for a vacation. No, we can't do all of these things. So we have to take from our fund money if we want to really fund these. So realistically, do we need a $300 each month? Probably not. So let's say we each get 200 introduce us to 400. So produces 2 400 Then we have 915 1 and we take 300. Maybe 619 left. 515. We have 215. What? Then We have 15 so we can break our money down. It's just looking at how much money we're going to spend on each things. Now this emergency fund, once it gets to a once, it's full. Once we have armor, just one as high as we want. We can clear that row and we don't need that anymore. Once we have our new house fund full, we're buying a new house. We're not saving for that new house anymore. Once we're probably always gonna be saving for our vacation. We'll probably always gonna be throwing some in savings just to have in savings. Now I put saving separate for them. The house separately. The vacation. I do that because I like to have savings set aside for other things. I personally like to have some money set aside in a separate account, just for investments. I found out about out about So a friend of mine says to me, Hey, I found out about this company. This they're doing X y Z. I think we can make some money on it. Do you want to throw some money in? If I have some money set aside for that, I can take those opportunities. If you have money set aside that you can take those opportunities if you don't have any money, said his eye for that. You know you miss out on opportunities in life, and once you have the ability to, it's amazing how many opportunities we really actually have in life once we have the ability to engage in them. So that's kind of how you use that. And I'll make that available to you as one of course resources. All right, so if you make an inconsistent and come like say you're in sales, it's might be a little bit harder to kind of determine how much you have. So I'm in sales and a few of the times a year I will get in basically an injection of a bunch of money because I'll have a big deal close. But the rest of the year it's kind of like, a dry spell, and then you have a large steel close, and then you're back to kind of your initial Monica. Well, when we're planning for that, we want a plan based on the lowest amount we'd make promote now, any after money confused for savings or fun, or to replenish those emergency funds. You know we want to plan based on the lowest amount of income we think we would make. So if you do a lot of overtime in the summer, but you don't in the winter where you do a lot in the winter. But you know what? The summer you want a plan for that lower income part of your life. If one of you work seasonally in the other one, doesn't you want to plan your life based on that one income and then just have that extra money? It makes your life a lot easier to do that. It's always good to have goals. So when you're budgeting, when you're planning out your future, you want have goals. How much do you want to save each year? Break it down to how much per month, How much do you need for retirement? We've discussed this a little bit earlier, and we're gonna discuss it in other modules. But how much do you need to spend monthly to reach that point budget? It set a number that you would need for a major emergency based on your area based on you know, you lifestyle. Do you think you need around 1000? Do you think you 2000 now these air goals to hit, They take time. I can tell you right now that after insurance I had an M R. I done. They check to see if I had a brain tumor and a bunch of tests Stone for fertility and I had $2500 worth of bills just come out of nowhere. And I thought after insurance, it would be a lot less so you can get really surprised. Sometimes creating a new zero. Creating a new zero is a kind of a concept that is really, really easy for some people to get, and it's really hard. For others, creating a new zero is really just a matter of mindset. So, personally, I don't like the number zero when you have a zero amount that is your zero It's very easy to have a negative amount end up in an account, because if you over, if you go over that zero amount, it's going to give. So I like to keep at least $1000 as a base. So say something happens. You get a credit card stolen. Say something happens where you accidentally make a mistake in your overspend. Having that buffer keeps you from going negative in account. It keeps you from having to worry so much about when bills come out versus when you're paid . Because if you're planning monthly, maybe you have more bills that come out sooner in the month bruises later in the month. So if you have $1000 with the buffer for most of your bills, that's going to allow you to have more girls come out in the beginning. But have it replenished through the month for the next month. So this this Ah, this new zero, that's what the minimum the door account can be at any given time. So whatever dips below that, that's what you have to put it back to. So if you put this minimum as a zero for the for the account are started putting minimum of 1000 for the account that all of your expenses they're gonna come out of no matter what happens, you need to fill that back up. Now, if you start running where money gets a little tight, you start reducing down to about 500. You had that buffer to get you there, right? That helped. But bringing that back up to a thousands going to bring you back to having that level of security. And it's always important to have that so that you don't dip below zero because that's going to start putting you negative on your accounts. And then we're dating ourselves out of a hole, and all the budgeting is gonna be to keep you from getting in holes. Now it's important to reward yourself. Rewarding yourself isn't going out and buying a fancy car. It isn't going out and buying every little thing you think you need. It's important to reward yourself because if all we ever do is take money and set it aside and we don't see the benefits of that, you know we're humans are very reward driven. Humans are very good at rewarding world as general population would get rewarding ourselves before we parables. Now their budget is in just cutting out all the fun things in life. It's it's budgeting for fun, too, and it's important to have those. So that's why we have our fun money. That's why we have our vacation account savings, not just for emergencies. For occasions. It's for large purchases, you know, if you when you talk to people who budget and they say, or they end up having nicer things, typically even more so than people who might make more money than them. So you know, once you have an emergency fund, you can say for real estate and things that will better your life. It's important to think long term, and a lot of that is no one of my getting Now. This is what I could get later. So it's gonna think about your life where you're going and the united is the budgeting. Thanks very much there, the more information to come in future until you every day 4. Fun Money VS Expenses (1): Hello, This Shane again, And this mantra won't talk about thought money versus expenses. And this is something that I'm very passionate about, that we talked about a little bit in the budgeting and the intro where we have separate accounts that we're using for fun money in separate countries and for expenses. Now there's a major concept with this called opportunity costs that we're gonna go over, and it's a different kind of way of viewing what you're spending your money on. So as faras fund money in expenses go, you always want to pay your expenses before you take your fund money and use it because fund money is just money that you it's fun. You get to do whatever you want with it, and everyone should have a section of their money that they set aside for this because we're all human. We all want to buy things we really don't need. Sometimes we need we want a new PlayStation. We want a new video game. You know, we can take that out of our fund money if we have that set of side and it's not gonna hurt our finances. So opportunity Cost is what are you giving up to make this purchase? What are you getting? And what could you get instead? So se We want to buy a new car. Our new car might cost us $10,000. Well, it's not new. It's used. So $10,000 for this car. Do we really need a car? Maybe we didn't. Maybe the car we have could last a few more years instead of buying this new car, which is gonna cost us $10,000. What we could do is make improvements to our house so you could take that same $10,000 we could make improvements to our house. And with that $10,000 of improvements to our house, our house value could go up 15 to $20,000 then we could sell it and we would pocket profit . That's an opportunity cost. Another opportunity. Cost is with that same 10,000. We could buy dividend stocks and be sitting on a dividend stock that pays 9%. So be paying us $900 a year for the foreseeable future Now, depending on how old you are, that's a great investment because in 10 years that's gonna pay you 9000 for your 10,000 and you're still gonna have the $10,000 with stock. So as you're growing, your income is your growing your finances and your making decisions. It's important to look at opportunity cost. So it's again the what you were getting rid of what you could get instead, you know, I like to view everything as in How much time did it cost to take to make this money? And how much of my time is this? Worth says There's the old expression of time is money, and it's a great way to look at things. So say you're making $15 an hour. You're making $15 an hour looking at some playing that's worth $150. Now let's forget about taxes to make it simple. And let's say that that's then worth 10 hours of your time. Most things that I have looked at around 100 $50 mark probably are not worse. 10 hours of my time. I have to ask myself, Am I going to get 10 hours worth of enjoyment out of this? Is this gonna feel like I spent the right amount of money later on. It's a very good way to stop yourself from making a lot of impulse buys. So if I'm looking at a fancy $20 meal in a restaurant versus a $10 meal, I might ask myself, Is this worth an hour and 1/2 of my time versus the one that's worth the force of an hour? You know, yes, managing your time. It's managing your time to money and how you expect that, because when we start kind of looking at as what could I virus is what I want. We're gonna end up in a different kind of scenario. Then I can afford this. So this is what I'm gonna spank. That's a hard mental transition to make. But once we have that, we can better spend our fund money from or enjoyment because a lot of people like to have more fun money than they probably need, because we buy things we don't really need. I'm not telling you not to buy things. I'm telling you to think about what you're buying if you need them in doing it smarter, especially for the betterment of your future. Now we're looking fun money. We use it last. So I get paid. I take our for money out. I put the rest of our shared account and then divide it. Most other accounts. My wife does the same thing. Uh, buy whatever you want with it. It's within your fund. Money, budget, thistles, money just for you. That's why it's there. You know, this is money. So you go have drinks with the friends you can. This is money. So you can go and buy a video game if you want to. You know, once you have this is how much money I can spend. Whatever I want, whatever makes me happy. That's a really relieving feelings. You don't feel guilty about buying these things either, because, you know, the rest is taken care of expenses. This is what we do. Fund money versus expenses. You're paying expenses first. That's why I want to talk about it last in this module because we're gonna pay these. First we compare house, we're gonna pair utilities were in a pair of bills before we end up paying ourselves. Because these are the things that make our life front. We're gonna buy food before we buy candy. We're gonna buy food before we buy a movie. We're gonna buy food before we go to a movie with a pair house before we go to a movie. And it's a really easy concept to say It's a little bit harder in practice, especially if you're a little more impulsive. So once we're looking at all of our expenses, we want to make a list of our expenses. We want to say these air everywhere we spend money. This is how much we spend on the every month. And if you don't know exactly how much it is, you're gonna guess when you do this, you're gonna get a little higher than what it probably is. So in the winter, it costs more than in the summer for gas. Live in Michigan in the heating costs goes up. We pay almost nothing for gas in the summer. We pay a lot in the winter, so always around we schedule money put aside for that bill, actually, based on the winner, because I don't want to have a feeling of our finances changing based on the time of year. I wanted to be consistent, so that's the way we set ours up an actual results in a saving a little bit more money, and it's all mindset to So you want to be able to say we spend this much on our bills? We spent this much on our house. We spend this much on ourselves and we have money set aside for security. And it's just a different way of living where when things are front, when you have problems, you could take care of them. And when you want to buy a nice things for yourself that you deserve because we all deserve nice things, you have your fun money set aside for that, and that's the end of this module. I hope that you were able to take opportunity cost and kind of visualize that Ah, little better and understand it. So thank you for listening you every day. 5. How to use the on track spreadsheet: Logan. It was Shane. And in this module gonna talk about the on track spreadsheet, which is attached below Macoris and you to me. Ah, this spreadsheet is for every month of the year, so you can track all of your spending in one place and make sure that we are keeping on track. It's also great for setting a plan. So what might do is we want to actually on this page, put in all of our incomes in our expenses with a savings goal. We want to put that in here, and then in January, it's gonna carry over all of our expenses. Oliver, incomes weaken, list additional purchases and will tell us how much money we need to her. How much money is left after expenses, How much money is left to reach her goal. How much is left after our savings come out and how much is left after we've made any additional purchases? So in this box here, I would put I want to Starbucks and bought coffee. I would put my $5 coffee right here. This is just tracking as we go. So as an example to fill this out, say, my monthly income after tax. And we want to fill this out after tax because we're not gonna get our taxes back until next year. And we don't want taxes to be part of our regular plan. We don't want to plan for having that tax income come back to us. We want a plan with the idea that one cent tax one come, it's gone. We might not naturally get that back, cause we don't really know until the end of the year when we actually find Do are finalized taxes. We will do things to reduce those taxes. But we don't wanna be dependent on, um on Uncle Sam presenting this bag. Our taxes tax time should just be a nice bonus to our savings. So say, each month I'm making $2400 by wife is made in $2500 then every month we get $100 just from doing side work seller totals 5000. Our house cost us $1200. We have a $300 car payment. Car insurance revolt or vehicles is to 10. Our electric bill is normally 1 10 or gas bill. These Aaron Monthly so and you might have electric bills that are higher. You might have gas bills that are higher throughout the year. What you want to do is you want average those out, right? So if in December, you know, you're usually paying 1 50 for gas, but in July, you know you're paying around $30. Personally, I put 1 15 here. I do that because when I look at this, I want to say I want a plan for the high end of everything. So at the end of the day, if there's extra money, Great, Um, we're planning for the high end of all our costs. So say I have cable and I are a streaming service is your television. Everyone has something like this. We have Netflix and Amazon. The total cost to that is about $30 a month. When you spread it out, we have two vehicles that use gas. Um, least probably spend $45 a month on gas on the high end. I usually Philip for 20. My wife usually fills up for 20. So 45 to get number there we were relatively close to home. Uh, mus faras food. This is going to be not only eating out, but eating in, Um, that's the amount of money that you're spending on food. It's irrelevant. It's a consistent monthly cost that is one of the highest expenses most people pay. So for our family, we probably spend at least $450 a month just eating out for our Internet and phones. We have an $80 Internet go. And then we also got new phones recently that it's 1 20 So we pay 200. Do you have any other expenses? You're gonna wanna list those here. So if you have another expenses, say you have a credit harder alone say that would be 1 30 So for a heart, A card say we have 100 $30 bill on there that we pay each month, but that here was a credit card. You always want to make sure that you're gonna pay more than what a minimum is. The minimum is built to keep you paying that credit card off as long as possible so they can get us much interest on a few as possible. So put that 1 30 there. Great. So our savings goal tab. This tab is where we want to put the amount of money that we want to save each year. So say my wife and I, we are making $5000 a month after tax, which means before tax together, we're probably making at least 20% more. So figure 7500 a month. They're making $80,000 a year, is a couple. So we want to save 10% of that $8000. These air rough numbers thes aren't my are actuals. Ah, it's just a good example are actuals. There's pennies added to these, So we go to January genuine. Has our incomes listed, has our expenses listed? Amount of money we have left after expenses, and it breaks down how much we want to save each year into how much we need to save each month. Then I'll go into a personal savings account. It sounds we should have. So after our savings, we should have $1500 left After the $5 came out for Starbucks the end of the month, we should have $1503. A lot of actually I almost forgot something in our other I do wanna actually marked down. Um, how much we put into a retirement. So Sage Month, we're going to put 2 50 into retirement. Now, adjust our numbers significantly over here. Uh, so we go to a movie here, go out to dinner Just the cost that we didn't expect to add when we were putting together our food budget. Say we meet friends and we go to a baseball game. When I add each one of these individually in here, we can see the total cost of all of our purchases right through the mouth. TV goes out, we get a new TV car has a problem. We fix the car, so we want to put anything we do in here. We go to the gas station to get a snack. They're the gas station. We get a soda afterward, we stop for McDonald's. We got to want tore hers. We put all these in here and we can see them all. Adding up, it's actually should quite shocking. When you first start doing this, how quickly things can add up just in the course of a month. If you're adding every individual purchase, I think about in the course of the day, it's really easy to stop at a gas station stopped at a fast food. That's wrong. Stop for lunch. Coffee on your way home. It's $20 right there. If you paid five bucks at each location, that's really not even stretching. How much you could have done? Um, this will be spread to every month, so you'll be able to see on every tab where you're at, and this is all set up in an Excel sheet. So if you wanna have access to this online, I'm doing this in Google docks. What you're gonna want to do is grab that file and then just drag it up into Google dogs. So adding, that is very simple. We will just go from to our Google docks after a minute Google account. It's right under here who will drive it, allows you to make docks, allows you to mate spreadsheets, slides, forms, all kind of stuff you can do inside Google Drive allows You made Google docks is the primary when I used for word processing and then I'm making spreadsheets is very powerful, so I just download it here. I don't want it to my desktop, so I'm can access it easily and show you are. All I do is drag it here that will upload the item. And when I go to open it, it will ask me what I want. Open it with. I will click on Google Sheets. It will create a duplicate of it inside of Google docks. Do the sheets. There we are. Just click on these tabs here to you every month, and it's easily attract. This is all saved in the cloud. It's if something free provided by Google. So if you local discretion here, you should be able to track all of your savings and expenses throughout the year. This is a great tool for making sure you stay on track. Thank you for much of this model. If you wants download this document, which I highly recommend for, um, given for a year. Getting yourself on tracking in the mindset of marking down everything you spend the tracking everything you spend. This is actually what I did when I first started getting really into personal finance. Cut me in the right mindset by doing all of this tracking. If you I want this it is in the documents attached below. Underneath the resource is thank you 6. Making your money work for you (1): Well, it's Jane again. And then this model will talk about how compounding your interest and making your money works for you. We discussed this a little bit in retirement planning, but we could do this outside of retirement planning. Just so we have additional investments. And if so, we have investments that pay us so some of the examples might be a dividend stock. So you have a dividend stock, and that's going to pay you X amount per cent. So say it pays you 5% a year. Now you put $1000 it's gonna pay you $50 a year. That's for long amount of time. You hold it, say it goes up in value over the next 10 years. It's paying you $100 a year. That's not a lot, but as you grow these assets, you're going to get more out of them and you get a lot more money back as you put more in. So it's it's not in the media are why, when you're making money with your making your money work for you, it's a lot of putting the time in until you have the amount that we're working towards and it's a lot of self discipline, which is all personal finance really is is discipline. So going into that, we're gonna look at compound interest first, only compound interest. All I like it when I take the investment, and then I make more money on the profit so compound interest gets me excited. You know, stocks, dividends, lending. Those will give you compound interest are you? But money the stock market, you see a stop go up and then you sell it. And then you put into that profit into another stock that goes up more so you're making profit on your profit. As's faras dividends go. That would be like buying a stock. And when you buy a stock, you're buying a portion of a company. So with the dividends paying stop, you actually get some of those yearly profits, and it paid all quarterly. So say you have a stock that pays you 5% or even, let's say 10%. So you pay $10 for a stock that pays you 10% every year. They're gonna pay you about a dollar. Now say this stock goes up to $30 in the next 10 years. Now, the same stock is going to be paying $3 instead of $1. And if you're consistently buying into stocks like this or investments like this, they're gonna pay you dividends are gonna consistently be building residual income, which you can then put back into it. So one thing that I do when I buy dividend stocks is I put it in. I just do this through an e trade account, very simple, where I have automatically set up where my dividend stocks will purchase MAWR dividends. So my dividends are leveraged to buy more of those stocks, so it just it's going to give me exponential growth was on putting that interest the compound interest into buying more of the stop, which gives me more stocks, which gives me MAWR payments. Now most people pay compound interest. Most people don't get compound interest. That's the that's the struggle with compound interest. It's very easy to accumulate interest that's gonna compound against you in the form of loans. It's very hard to build it, and it's very slow going to build it. So your first few years of building compound interest, they're going to be very difficult. They're going to look really bad. So you might make a profit of 10 to $100 your first year of investing. But really, all you're doing is setting money aside, you know, I mean, you might even lose money if you make a couple of slightly poor choices. But that's a risk we're gonna be willing to take because this money we're gonna put aside this is money that we're setting aside specifically for the purpose off growing our income growing our wealth. We're growing our financial security. Now, when we look at this many, most people pay the compound interest. And by compounding interests against themselves, they're losing more and more money over time. We don't want to be on that spectrum. We want to be compounding. Interest will be gained money faster over time. And it's important to look at that over years. So this is the little picture of a napkin with compound interest, as you can see in the beginning year, like this is a really gentle slope. But say this is say, this is the 1st 20 years. It's a really gentle slope of how much money you get, but eventually with compound interest, you almost get to a tipping point. So, for instance, I used the example of $1 terms in the $2.2 dollars terms of the $4.4 dollars turns into $8 those would be all in the same time, increments as each other. But that jump from 1 to 2. It's not that much. Jump from 2 to 4. That's not that much. Jump from 4 to 8. Now we're seeing some gains. Now we're jumping up Were conned ASEAN this kind of section. But once we're really rolling, we've got almost a steam roller moving into this section of here where we're growing our income a lot just from all the compound interest. And you can do that with a variety of things you can do interpersonal lending to. So if you want to end up being the creditor, you could get on something like lending club, and you can lend other people money again. These air risks. So all investments are risks, and you have to make sure you know you're comfortable with taking that wrist. You're comfortable with the idea that sometimes you're gonna lose, sometimes you're gonna win. But by learning more, and by being smart about it, we can ensure that we went. You know, everything in life's at risk by not putting your money into investments, your taking a risk that you're not gonna gain more money. But no, it's it's your level of risk, and you have to evaluate how much you're willing to take. So how did we get compound interest? Any profit from an investment that you make and move into another investment is an opportunity for compound in the compound interests. Come island you $100. You pay me back $105. I take that $505 I then went $105 to someone else who pays me back 100 $12. So I made $2 a compound interest off that $5 compared to what I made all of you. That's a little bit drastic of examples for his interest goes, but you can see how it would grow over time by putting the interests into one loan after another after another, or one stock after another after another. Is it gross now? Taking profits from a resent of a rental property, putting it back, putting into stock raise the value could calm Huntress well, so that's one tactic that I've seen work out really well for people. But they have a rental property, and you take profits from that. So so you're making $100 a month awful rental property. You have a small security fund built up for the rental property. It was built up by the $100. Then you take $500 you start buying stocks with it. That raising value will pay you dividends. Now you can take money and put it into a bombed and reinvested, plus the interest that compounds so you can spend the majority of your life just compounding interest with bonds so you could buy government bonds, which are traditionally viewed as being very safe. And you can buy a 10 year bond or 15 year bond, and then you can put that back into another bond afterwards, with all of the interest that you've gained. Now this creates that spiraling about because you're gaining interest on interest, and that's how we grow our money. Now you want to buy things that pay you, we discussed this a little bit. So three period peer lending. You can find them all over. You could buy dividend stocks, You can buy rental properties and you can buy businesses. You can go out and buy an actual business. You could search online, say how to buy a business. They'll give you lists of companies who can you can buy businesses from. You can buy a franchise. So say you've worked in fast food your whole life. You've been managing McDonald's for the last 10 years, you know, managing a McDonald's. If the entire story we're gonna make okay money, that's decent. I've met people who started working at McDonald's in their twenties, and they ended up just staying there. And now they're making 50 K a year managing a McDonald's. You know that's not a bad job, but you have that experience. You have that money. Maybe you can't afford to open a McDonald's. Think it takes about a $1,000,000 right now, But maybe you can open your own Bernard tanker. Maybe you can open your own Wendy's. You know you can go to these companies. That franchise McDonald's does it. Burger King does it and believe Taco Bell even does it to where you can open up your own. You just have to get along for it or to have the correct amount of investments. And it's cookie cutter start. They do advertising for you. They take a portion of your revenue and you you get the rest of the prophet. So there are a lot of companies that make money just by starting all of these chain restaurants, and they just grow their income that way. You know, that's an option you could do now when we look at rental properties, that's a vigorous to know all these things. Air risk so didn't stop. It could tank. The company could go on a business. It's probably not going to if it's an established company, has been around for a long time, but we all most of us will, especially if you're If you're above the agent 24 25 you probably remember in detail the financial collapse in a way and how that affected people who were working and getting their first jobs or getting out of school now rental properties. We're really good to buy them because the housing market was down the period appear London may not have been is good because a lot of people were having credit problems. Now it's all circumstantial. You know, you could start a business and it could fail. You could buy dividend stock and it could get have you have to weigh the amount of risk you're willing to take. You know, Are these all things that everyone should do? No. Some people are very risk averse, and the number one thing they could do for making money work for them is just keep putting money in the stock market. It's a very safe traditionally thing to Dio. Now, when we do that, we understand it is arrest so you can lose money on the S and P 500 which is basically the top 500 companies and other stocks put into a portfolio that you buy portions off. But by leveraging money you have and setting away money just for growing it, we can grow our money on the side. And that's how you make money work for you. You buy assets that make you more money and that is the end of this module. You have a great day. Thank you for listening 7. Planning for Retirement (1): so planning for retirement. This is probably the most important modules. And for most people, this is gonna be one of the easiest things to do is just disciplined. You know, most employers have four. Okay, unless you're working for some really small company, most when we're gonna match. So the main thing we want to do is make sure putting money out for a one K, make sure that we're buying assets that our girl over time and we're not touching them. So are that comes down to your minds that on it, and part of it comes down to power of compound interest, which have mentioned a few times. So the sooner you start saving and planning, the better. So if you can. If you're in your early twenties or if you're 18 if you can get a 41 k do it. If you're 30 and you don't have for a one K, it's time to start. This is just a quick chart showing interest without calm pounding compound interest of the principal just on an amount put it. So we put in $1000 over 18 years up to seven grand. You know, that's just for 20 years. You know, that's a lot of money. So every dollar that you put in time seven, you're not going to get that kind of returns on a lot of things in life. So the more money you're putting in a retirement account, the better you're gonna be able to do overtime. And we can actually do some math on that really quick. So this is just a Google Docks form that I created that has a very quick way of showing this interest. So say we started at age 25 and we put $1000 a year in so our first year totally of $1000. So we're gonna average 5% interest, which is actually low compared to the stock market averages. So put another 1000. We get 5% put it in another 1000. We get 5% all the way down until we're 29 at 30 were putting 1500. And this isn't even counting what an employer match would at be adding Now, if we take that all the way down and we're putting $2000 a year in at age 40 on down until we retire, a retire age 65 of $200,000. And let's do some quick math here on how much we actually paid it. So just some quick math on the some there, all of this total contribution is only $72,000 the total amount of money that we made on it is $201,000. So you know you're more than doubling your money. You're very close to tripling your money just by starting to do this investment. In a lot of the gains there there are from that initial set of $1000 that we're putting in in early twenties. That's in this example. No saying this example. We also have an employer match, So let's go through and we can double. We're putting in because their employers with a match up to 4% say, let's say 4%. Let's say 2% of their income are however much we want to put in. Analysts say this is all covered, so all these numbers are gonna double. Let's take a look. All right, so, looking at this, what I did was I did an employer match for up to $1500 a year, 1 to 1. So with this one that we put in a thousands of employer put in 2000 so we're essentially gonna have to on $2000 going in till 29 30 It would be 3000 going down to 3500. We're putting in $2000 a month still, but with our employer match up to 1500 we're gonna have that now are totally ended. All that is going to be $131,000 put in. We put in $71,000 worth of that ourselves for us to spend from the employer, and then we have $377,000. Now, that sounds like a lot of money, especially to most Americans. So most of us, we're not gonna have that. But it's very easy if you use this. And if the stock market does well, you can end up with a $1,000,000. So if you focus on this and you put in more when you're younger, you're actually gonna end up way better off in the future. So let's take a look at how backward and this, I think is part that actually is gonna show the most of the advantage of compound interest . Now, let's say we could do 3500 which, at 25 most of us probably haven't low enough expenses. We could probably do 3500 if we really put our minds to it with the employer match. So So your employer's matching up to 1500. Realistically, you're putting $2000 away now by keeping this and it comes out of your pay trip before you even see it, you're not gonna notice it. Uh, if it's already being taken out. So we have all this coming out, and then later in life, we actually reduce it. So we reduce it to one thousands, assume the employers paying another 1000 then, right? We're actually gonna end up with more money here with less paid in. And that's because this 3500 of the top we're going to be paying so much less for that interest to compound. Then we would if we were paying more later. So if you pay more now like pay more now, before you have kids, pain are more. Now, before you have a house, you know the sooner you make these payments sooner you pay your self because is what you're doing. You're paying yourself. You're setting yourself up for retirement, but you can't trust the government to do that for you. Now this is conservative. This is doing very light retirement investing. This is not a lot of money to putting away each year of retirement. There are people who put in significantly more, and they get a lot more out of it. So you can easily hit these numbers and be set a lot nicer than what some of your friends and family are gonna be doing if they're planning on Social Security, because it's probably not gonna be there. I want to say to, You know, Don't pull your retirement savings self So this is not your emergency money. This is not even your money. That's the best way to look at this. This is not money. That is for you. This is money for you. At 65 this is money you do not. It's best to look at you, not really owning it until you're of the age where you can pull it out and reduce tax, which is 65 a half. So once you're 65 a half, the government allows you to pull out of a traditional IRA. You will have to pay taxes on it then, but all those taxes you've already made compound interest on, so it's gonna grow even more now. It's kind of a good thing to try to just act like it's not even there. There are people who will try to pull out this money. So for Christmas is a big thing, because Christmas is huge in our culture. We want to give the kids everything they can get. We want to get our spouse something. We want to go on a vacation sometimes, you know. Oh, we got all this. We got $100,000 in retirement. It is takes him out now, or it's what some people do is I'll take a loan out against their retirement. You know, the best thing you could do with your retirement is to leave it alone. It's very hard to do, especially once you start really learning and really experiencing the growth of what you can see in it. But if you just stay consistent with it and don't pull it out. You're gonna have a much better life in the long term. Now it's going to cost more the to retire career than you. Even you think so? Just for instance, you can live off $20,000 a year. But another thing you have to think about is if you're retired, what are you going to do with all of your free time? A lot of us have hobbies. We engage in a lot of people start to travel more. You know, most people when they retire. I mean, at 65 nowadays, people are and better health. We have your in the live longer than what your grandparent's probably did. You know, you want a plan for living a long time. You want a plan for eventually having so much free time. You don't know what to do with yourself, and that's gonna happen. You know, we're gonna want to be able to still buy people gifts. You're gonna want to still be able to still take the grandkids out, or take your kids out to dinner because your life isn't gonna drastically change other. They're gonna have a lot more free time once you start going into retirement. You know, that's probably your biggest changes that you have all this free time. You need to fill in filling three times expenses expensive. If you look at how much money you spend on your days off versus how much money you spent on your days working, it's probably a lot higher. I know it is for our household. So can you live on 20 grand a year? Yeah, people do it all time. People do it working full time. People do it working. Not at all, you know, but you don't want to. Even if your house is fully paid off, you don't want to live on $20,000 a year, especially with two people. So when you look at how much you spend now and imagine having every day off the week, so every day is Saturday, many people don't account for us when they're planning into retirement. Uh, the entertainment costs of retirement is only going to go up, and that's because you have so much more free time. So I mean, maybe you like to. All you want to do is go outside and walk around. You know, your nature enthusiast. You get old. That's all you do. That's great. But you're still probably gonna end up spending more on entertainment than any other time of your life because there is more time. There's more time that you need to be entertained and you know you've earned it. So just planning for the amount of money that you wanna have after you retire so that your your lifestyle isn't going to drastically change. That's the big thing. You know, you'll see people who move into cheaper areas when they retire just because they want to keep their lifestyle. But they don't want to have the added expenses of living in that more expensive neighborhood or that more expensive part of the country. That's why you get parts of the country that are very much filled with people who are retired because it's kind of turned into a retirement community. The living there is a little easier, especially in these retirement communities in Florida. I mean, the cost of living in Florida last time I checked was close to that of Michigan, uh, have more, you know, more seaside real estate than what we have over here, because we don't have any. So some of the housing is a little bit more expensive. You want to live in those areas, but you can live in Florida for about as much you can live in Michigan for, So you get a lot of people who leave. Michigan will go down there, and they just don't have to shovel their expenses, go down a little bit. But it's planning for your retirement and knowing, Hey, I wanna have this much when I retire. So if you're fine, if you think you will be fine with $20,000 a year once you hit $300,000 retirement savings , how many years is that? 15. So that's you going from 65 80. Now you're gonna get interest on that $300,000. You're probably not gonna be pulling it all out when there's things you can do. Once you do retire to maintain those and you don't you don't want to sit down with a financial advisor to go over those and see what you need to do. So I was recommend talking to a financial advisor. Sit down with one, say, Hey, this is what I need. These are my goals. How do I reach down, they'll sit down. They'll tell you step for step. This how much we put away now, this is how it should put away. Then this is how much you're gonna have. This is how much will be able to make hey yourself per year out of it when you retire. And that's smart. It's not fun, but you're gonna have a lot more security going into retirement than most Americans. That's the end of this module and look forward to speaking with you more on next module. 8. Saving and investments module (1): in this lesson, we're gonna talk about the importance of savings and investments. My name is Shane and just jumping right into its saving. So what do we want to save for? So we want to save for an emergency fund, wanna save so we can getting better assets. And we want to say for vacations. We want to save for schooling, for ourselves or for our Children. And we want to say, for our Children, in case of an emergency involving our Children, we also want to save for security. So when we talk about an emergency fund, one of the main things we want to talk about is how much do you need in case of emergency? And that varies based on location. I'm living in Grand Rapids, Michigan. My biggest emergency that I can think of would be our house burning down. So if our house burns down, our deductible is $1000. So if we need $1000 to pair deductible to replace the house, we need to make sure we have that thousands and save. It's great. That's a start, an emergency fund. But we also need to have money set aside for an emergency in bowling a hospital, bills or a car. So part of what we do is we set aside the deductible that we would need for if one of our cars, Scott Total, because realistically, we're not losing both movements, and then we also set aside enough in case of a hospital bill or emergency. So between the three of these, we threat. We set aside about $3000 personally because that's what we feel way we need. And we didn't set that all of overnight. We put a little bit of side out of the repaid ship until we had that. And once the important thing is, once you have these accounts set up, you're not putting money into them anymore. They can be fully set up, and you can have that money there that can sit and later be used. But once you and filling it up is the hardest part. So building up to the emergency fund account is the hardest part of having an emergency fund. Would you have it? It's just a nice piece of mind to have and you just don't touch it. And one way to make sure we're not touching these separate accounts is to put them into separate accounts. So we went to her bank and we literally opened. I think it was seven. Chef, seven joint savings accounts. And what we did was whenever we got paid, we put all our money into one account, and then we eat Scott X amount of each of our checks, four fund money. So the thing we did there was that we took that fund money. That was cool. Do whatever we want with. And the rest went straight to the emergency fund assets, vacations, school Children and security. So security is a separate one that we list, because in that we just use that for saving extra money. That's money that we decided we were gonna set aside and have left over. Security might be replaced for you with an account that's for a new house. Um, so every time we get paid, it gets divided amongst these first, his mind amounts all their savings, and we had us another account that was separate, that we pulled all of our bills from. So every time we got paid, everything was set aside, moved into these accounts, we knew exactly how much we had for everything. And I mean, realistically, this is something you can do in two minutes once a week. Or you can do it in two minutes once a month if you really want to. If you set it up that way, a lot of people aren't gonna do that. So a lot of people, they just save everything in one account, and that's bad. So if you're saving everything in one account and you're waiting and you want to go on a vacation, you might say, Hey, I've got $5000. I could go on a vacation, but maybe the amount you need for emergency following was $2000 he might you need for schooling. Next year is gonna be $1000 then you were saving for a new house, and that's no $1000 you had set aside already. So really, you didn't have anything to go on a vacation. You just said I have $5000 you wanted a vacation. Having those separate accounts are gonna keep you from making that mistake. It's a very easy mistake to make its a mistake. A lot of people dio end up getting stuck into, especially when you go on a vacation. You wanna have a good time? You want to make memories going into investments, Investments grow over time. So these are going to be things like stocks, bonds, property. They're going to give you money in the future there, or they're gonna set you in the next generation up before a future success. So these are not things that are going to have an immediate benefit. And that's the hardest part to look at when we're looking at investments. So the hardest thing is understanding that when we don't get something today, we're going to get something better tomorrow. That's very hard for a lot of us, because the age we live in, we live in immediate gratification. So instead of spending $10 for a cheeseburger, go home and make it for free, you know there's a cost difference there of $7 its looking at things kind of like that. You have to wait a little longer to get the cheeseburger, but you're gonna save $7 with investments. It's I'm gonna buy it now, and I'm gonna wait and tell its X amount to sell it So, for instance, right now I'm investing in silver investing in silver. Except listen to multiple economist who believe silver is going to go up in value if the market crashes again Now. Last time I did that, it jumped up to 50. It's about 50 and is trading at 16 Right now. Once you start learning more about investments, once you start learning about growing your income more, you can make the small changes. You can say, OK, let's invest in some precious metals. This is when it did in the past. This is what it could do in the future. And then you take those risks and you make sure you take calculated risks. And that's a whole separate thing that you have to learn. And once your finances earns, are straight and in order, you can start making those moves, and that will grow your income more. That will grow your financial security more going into the future. So that's why we're looking investments. That's why it's important to invest. The easiest thing you can do if you don't want to learn about investments, is to utilize your employer and invest in a 401 K so, especially if your employer does a match. So I work for someone that gave a 4% match dollar for dollar. That's 4% of my income. So if I made $30,000 I was going to put in drug helpful. You're right here $1200 a year and they were gonna match that dollar for dollar. That's 4% of my ankle now. Is that an amount that most people are gonna put in? I don't know. It depends on your living situation. It depends on what your savings are. And it depends on where you have everything built up for how you want to live your life. $1200 a year put into retirement fund is not that much. It's a it's non tax one. Come if you do a a traditional IRA and it comes out before you even get your paycheck, so they're going to manage a dollar dollar. So I was putting in 1200. I was getting 2400 out of it. I was immediately gaining 100% online, save in my investments. So, you know, if you look at your long term future is a little silly not to do stuff like that when you have the opportunity to, uh, in this section. I do want to talk about why the Richard Rich and you know that's a important thing to look at when we look at our finances and kind of how we spend our money and how the middle class traditionally spends their money. So the rich rich because they buy assets that pay them. They purchased things that will get the money in the future. It's more of a long term goal. So they sacrifice for the now. So the future that could have things. And when I say rich, I don't mean people that are making billions of dollars a year. They're doing this, but I mean people who are even just upper middle class or middle middle class, they're gonna be doing more of this than someone who is Payne, who is typically going to be lower income, possibly in government assistance. Now, the more money you make, the more you can do That's true, but at any income level, you can do things that are gonna benefit you in the long term. No, this won't make you a millionaire, but over time. Saving and investing will change your life for the better because you're going to have what essentially turns into a steam roller effect so more now gives you infinitely more later compared to I'm sorry, I should not have said infinitely exponentially more later compared to investing later. So $1000 today is going to grow a lot more. If you're 30 then it will if you put $1000 away at age 50 and a really good kind of one of you. This is I'm not telling you to act to spend money like the rich. I'm telling you to look at how they kind of how they spend their money. And a big part of that is we're gonna focus on creating a situation for ourselves where when we spend our money, we're spending it to our benefit instead of to a benefit of a creditor and to the benefit of other businesses, or are employers. So you not taking part in your 401 k that has matching? That's the benefits. Your employer. They don't have to pay that extra $1200 a year that they might be mashing like it was in my case. Now if I put that aside personally and no, don't utilize that, I'm just lead losing out on that $1200. But by utilizing it, not only does it realistically increase my income by $1200 a year, but it also gives me a higher amount of money that's invested now in stocks with somebody else managing. It was supposed to be smarter than me with stops who's that's Their whole job is to all the new stocks. So they're gonna take care of it now when we focus on investments, when we try to think more like how the rich think and we take care of our assets and our bills first and then we take care of our fun second. So that's why when we're listing out our savings and investments, we're gonna have all these accounts and we're gonna have her fun money. And you know, once these are all set up once you have your full emergency fund, once you have the money you want, set aside for vacations. Once you have the security fund, once you have your if you already have a house, great. Maybe you don't need a house fund. But once these air all set up, you can allocate that money back to your fund money if you want to. So once you have your emergency fund set up, maybe it takes you where you're set it up the next year you have your emergency fund, and then maybe you or your wife have an extra $100 a month to go spend going out to go shopping with. And this is looking at really low numbers. So if both of you are making 50 $60,000 a year, those numbers are gonna be higher. It's gonna take you less time to build up these emergency funds, right? That is savings and investments module. We will have. I'll have more in next module. You have a great day.